Intel appoints Lip-Bu Tan as CEO – as TSMC pitches JV
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Semiconductor veteran Lip-Bu Tan has accepted the position of CEO at Intel Corp. and will rejoin the board of directors.
Tan stood down from Intel’s board in August 2024, reportedly after a difference of opinion with Intel’s then CEO, Pat Gelsinger. When Gelsinger was subsequently forced out of the company in December 2024 Tan was tipped as a potential replacement.
Meanwhile it is reported by Reuters that the world’s leading foundry, TSMC, has been pitching the idea of taking control of Intel’s manufacturing operations through a joint venture in which it would hold a minority share. The plan would be that US customers of Intel such as Qualcomm, Nvidia, AMD and Broadcom would hold the majority of the stock. That would leave Intel to focus on developing and selling chips and divorced from the Intel Foundry manufacturing arm.
It is not known whether Tan is an advocate of the TSMC plan. Tan resigned from the board in August 2024 after being given a director’s brief to review manufacturing operations. Tan reportedly grew frustrated with the bureaucratic culture, large workforce and Intel’s approach to contract manufacturing.
Lip-Bu Tan quit Intel board after ‘differences’ with CEO, says Reuters
Tan succeeds the interim co-CEOs David Zinsner and Michelle Johnston Holthaus. Zinsner will remain in place as CFO and Johnston Holthaus will remain CEO of Intel Products. Frank Yeary continues in the role of chair.
A quote from Tan in the press announcement provides a hint that he is ready to stick with the Intel “Product+Foundry” strategy for now.
Tan also sent a message to all Intel staff in which he said: “Together, we will work hard to restore Intel’s position as a world-class products company, establish ourselves as a world-class foundry and delight our customers like never before.”
That said, it would still be possible for Tan to present the creation of a joint-venture as an extension of that strategy.
Tan is a highly respected semiconductor CEO and technology investor. He served as CEO of Cadence Design Systems from 2009 to 2021. During his time as CEO, Cadence more than doubled its revenue, expanded operating margins and delivered stock price appreciation.
Meanwhile TSMC has been holding talks with US chip giants after being requested by the administration of President Donold Trump to put together a plan to help turn Intel around. Creating a joint-venture with customers is an approach TSMC has taken in Japan and Europe. In the case of ESMC in Germany and JASM in Japan TSMC has retained a majority holding. Accepting a minority holding in a US joint venture and would appeal to the US administration by keeping Intel’s manufacturing operation as majority-US owned.
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